TUESDAY, MARCH 20, 2001

Tuesday, March 20, 2001

(Statewide Session)

Indicates Matter Stricken

Indicates New Matter

The Senate assembled at 12:00 Noon, the hour to which it stood adjourned, and was called to order by the PRESIDENT.

A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:

Beloved, hear words from Genesis, the first Book of the Bible, Chapter 11:4ff:

“Then they said, ‘Come let us build ourselves a city, and a tower with its top in the heavens, and let us make a name for ourselves…”

Let us pray.

Our Father, it is about budget-building time! In the budget we begin to focus our minds and hearts upon our dreams and ambitions for our people, the reasons that brought us here in the first place.

The very wording in Genesis betrays the motives: “Let us build ourselves a city… let us make a name for ourselves.”

Father, help us today and in coming days to examine our motives and clarify our dreams and aspirations!

Help us to distinguish between our needs and our wants!

Amen.

The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.

REGULATION WITHDRAWN AND RESUBMITTED

The following was received:

Document No. 2583

Agency: Department of Insurance

1-23-110 et seq., 38-77-530

SUBJECT: South Carolina Reinsurance Facility Recoupment

Received by Lieutenant Governor January 29, 2001

Referred to Banking and Insurance Committee

Legislative Review Expiration May 29, 2001

Doctor of the Day

Senator LEVENTIS introduced Dr. William F. Ward, Jr. of Sumter, S.C., Doctor of the Day.

Expression of Personal Interest

Senator LEVENTIS rose for an Expression of Personal Interest.

CO-SPONSOR ADDED

S.406 -- Senator Thomas: A BILL TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, BY ADDING SECTION 389025 SO AS TO PROVIDE FOR A CAPTIVE REINSURANCE COMPANY TO BE LICENSED TO WRITE REINSURANCE CONTRACTS IN SOUTH CAROLINA; BY ADDING SECTION 389045 SO AS TO PROVIDE FOR MINIMUM CAPITALIZATION OR RESERVES FOR LICENSING OF A CAPTIVE REINSURANCE COMPANY; BY ADDING SECTION 389055 SO AS TO REQUIRE THE INCORPORATION OF A CAPTIVE REINSURANCE COMPANY AS A STOCK INSURER; BY ADDING SECTION 389075 SO AS TO PROVIDE FOR A CAPTIVE REINSURANCE COMPANY TO DISCOUNT ITS LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES; BY ADDING SECTION 3890145 SO AS TO PROVIDE FOR AN ANNUAL CAPTIVE REINSURANCE TAX OF FIVE THOUSAND DOLLARS; BY ADDING SECTION 3890185 SO AS TO PROVIDE FOR INSTATE MANAGEMENT OF THE ASSETS OF A CAPTIVE REINSURANCE COMPANY; TO AMEND SECTION 389010, RELATING TO DEFINITIONS FOR PURPOSES OF REGULATION OF CAPTIVE INSURANCE COMPANIES, SO AS TO PROVIDE DEFINITIONS FOR “CAPTIVE REINSURANCE COMPANY” AND CERTAIN ACCOUNTING TERMS; TO AMEND SECTION 389070, RELATING TO FINANCIAL REPORTING TO THE DIRECTOR OF THE SOUTH CAROLINA DEPARTMENT OF INSURANCE, SO AS TO REQUIRE AN ANNUAL REPORT FROM A CAPTIVE REINSURANCE COMPANY; TO AMEND SECTION 3890220, RELATING TO SPONSORS OF CAPTIVE INSURANCE COMPANIES, SO AS TO REQUIRE STATE LICENSING OR AUTHORIZATION OR, IN THE ALTERNATIVE, A TRUST FUND SECURING LOSSES; TO AMEND SECTION 381010, RELATING TO THE PURPOSES OF ESTABLISHING PROTECTED CELLS OF A DOMESTIC INSURER, SO AS TO INCLUDE A CAPTIVE INSURER; TO AMEND SECTION 381020, RELATING TO DEFINITIONS FOR PURPOSES OF PROTECTED CELL INSURANCE COMPANIES, SO AS TO INCLUDE A CAPTIVE INSURER; TO AMEND SECTION 10710, AS AMENDED, SECTION 10730, AND SECTION 10740, ALL RELATING TO INSURANCE ON PUBLIC BUILDINGS AND CONTENTS OWNED BY THE STATE, THE SEVERAL COUNTIES, AND SCHOOL DISTRICTS, SO AS TO PROVIDE FOR INSURANCE BY DOMESTIC CAPTIVE COMPANIES LICENSED BY THE DEPARTMENT; TO AMEND SECTION 42775, AS AMENDED, RELATING TO PAYMENT OF WORKERS’ COMPENSATION PREMIUMS BY STATE AGENCIES, SO AS TO PROVIDE FOR DETERMINATION OF THE PREMIUM AMOUNTS BY A DOMESTIC CAPTIVE COMPANY LICENSED BY THE DEPARTMENT.

On motion of Senator ALEXANDER, with unanimous consent, the name of Senator ALEXANDER was added as a co-sponsor of S. 406.

CO-SPONSOR ADDED

S.412 -- Senators Leatherman, Land, Reese, Courson, Martin, Short, Peeler, O’Dell, Ryberg, McGill and Grooms: A BILL TO AMEND TITLE 56, CHAPTER 31, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RENTAL OF PRIVATE PASSENGER AUTOMOBILES, SO AS TO PROVIDE THAT THIS CHAPTER ALSO APPLIES TO RENTAL VEHICLES, AND TO DEFINE RENTAL VEHICLES FOR THIS PURPOSE.

On motion of Senator GIESE, with unanimous consent, the name of Senator GIESE was added as a co-sponsor of S. 412.

CO-SPONSORS ADDED

S.328 -- Senators Alexander, Wilson, Giese, J.VerneSmith, Grooms, Martin and Waldrep: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 18 TO TITLE 37 SO AS TO PROVIDE THE “DO NOT CALL REGISTRY” AUTHORIZING THE DEPARTMENT OF CONSUMER AFFAIRS TO ESTABLISH A DATABASE OF RESIDENTIAL TELEPHONE SUBSCRIBERS WHO OBJECT TO RECEIVING CERTAIN TELEPHONE SOLICITATIONS, TO PROVIDE FOR THE OPERATION OF THE DATABASE BY THE DEPARTMENT, TO PROVIDE FOR FEES TO BE CHARGED TO PERSONS OR ENTITIES ACCESSING THE DATABASE, TO PROVIDE THAT THE FEES ARE USED TO MAINTAIN THE DATABASE, TO PROVIDE CIVIL PENALTIES FOR TELEPHONE SOLICITORS WHO CALL TELEPHONE NUMBERS ON THE REGISTRY MORE THAN ONCE IN A TWELVEMONTH PERIOD, TO PROVIDE A STATUTE OF LIMITATIONS, AND TO PROVIDE THAT TELEPHONE CALLER IDENTIFICATION SERVICES ARE NOT LIABLE FOR VIOLATIONS OF THIS CHAPTER AND TELEPHONE COMPANIES ARE NOT RESPONSIBLE FOR THE CHAPTER’S ENFORCEMENT OR LIABLE FOR ERRORS OR OMISSIONS IN THE DATABASE; TO AMEND SECTION 30440, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO ADD THE DATABASE ESTABLISHED PURSUANT TO THIS CHAPTER; AND TO AMEND SECTION 1617445, AS AMENDED, RELATING TO THE REGULATION OF UNSOLICITED CONSUMER TELEPHONE CALLS, SO AS TO REFERENCE THE REQUIREMENTS OF THIS CHAPTER.

On motion of Senator HAWKINS, with unanimous consent, the name of Senator HAWKINS was added as a co-sponsor of S. 328.

On motion of Senator BRANTON, with unanimous consent, the name of Senator BRANTON was added as a co-sponsor of S. 328.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S.465 -- Senator Waldrep: A BILL TO AMEND CHAPTER 1, TITLE 47, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CRUELTY TO ANIMALS, BY ADDING SECTION 47145 SO AS TO PROVIDE THAT DEPARTMENT OF SOCIAL SERVICES AND ADULT PROTECTIVE SERVICES EMPLOYEES MUST REPORT KNOWN OR SUSPECTED INSTANCES OF ANIMAL CRUELTY, FIGHTING, OR BAITING, TO PROVIDE FOR IMMUNITY FROM LIABILITY FOR REPORTING PURSUANT TO THIS SECTION AND TO PROVIDE THAT ANY VETERINARIAN OR OTHER PERSON MAY REPORT SUSPECTED ANIMAL CRUELTY, FIGHTING, OR BAITING, AND TO PROVIDE FOR IMMUNITY FROM CIVIL AND CRIMINAL LIABILITY FOR REPORTING PURSUANT TO THIS SECTION; TO AMEND SECTION 207510, AS AMENDED, RELATING TO PERSONS REQUIRED OR PERMITTED TO REPORT CHILD ABUSE OR NEGLECT, SO AS TO INCLUDE ANY OFFICER OR AGENT OF THE SOUTH CAROLINA SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS OR OF ANY SOCIETY INCORPORATED FOR THE PREVENTION OF CRUELTY TO ANIMALS AND ANY ANIMAL CONTROL OFFICER WITHIN THE SECTION; AND TO AMEND SECTION 433525, RELATING TO PERSONS REQUIRED TO REPORT ABUSE, NEGLECT, OR EXPLOITATION OF VULNERABLE ADULTS, SO AS TO INCLUDE ANY OFFICER OR AGENT OF THE SOUTH CAROLINA SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS OR OF ANY SOCIETY INCORPORATED FOR THE PREVENTION OF CRUELTY TO ANIMALS OR ANY ANIMAL CONTROL OFFICER WITHIN THE SECTION.

l:\council\bills\swb\5180djc01.doc

Read the first time and referred to the Committee on Agriculture and Natural Resources.

S.466 -- Senator Alexander: A BILL TO AMEND CHAPTER 10, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ENTERPRISE ZONE ACT, BY ADDING SECTION 121095 SO AS TO PROVIDE FOR A WITHHOLDING CREDIT FOR RETRAINING OF A PRODUCTION OR TECHNOLOGY EMPLOYEE; TO AMEND SECTION 12225, RELATING TO TREATMENT OF A SINGLEMEMBER LIABILITY COMPANY AND A GRANTOR TRUST FOR PURPOSES OF SOUTH CAROLINA INCOME TAX, SO AS TO INCLUDE A “QUALIFIED SUBCHAPTER ‘S’ SUBSIDIARY” AS AN ENTITY THAT IS NOT REGARDED SEPARATELY FROM ITS OWNER OR GRANTOR; TO AMEND SECTIONS 12640, AS AMENDED, AND 12650, BOTH RELATING TO APPLICATION AND ADOPTION OF THE FEDERAL INTERNAL REVENUE CODE TO STATE TAX LAWS, SO AS TO CLARIFY THE MEANINGS OF CERTAIN TERMS IN THE APPLICATION OF THE PROVISIONS AND TO EXCLUDE ADDITIONAL PROVISIONS CONCERNING THE TAXATION OF FOREIGN INCOME; TO AMEND SECTION 1262210, RELATING TO MEASUREMENT OF THE ENTIRE NET INCOME OF A TAXPAYER, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 1263330, RELATING TO THE DEFINITION OF “SOUTH CAROLINA EARNED INCOME” FOR PURPOSES OF THE TWO WAGE EARNER CREDIT, SO AS TO REFINE CITATIONS TO THE INTERNAL REVENUE CODE; TO AMEND SECTION 1263410, RELATING TO DEFINITIONS FOR PURPOSES OF THE CORPORATE INCOME TAX CREDIT FOR CORPORATE HEADQUARTERS, SO AS TO INCLUDE INFORMATION TECHNOLOGY AS A HEADQUARTERS-RELATED FUNCTION; TO AMEND SECTION 1263500, RELATING TO RETIREMENT PLAN TAX CREDITS, SO AS TO DETERMINE THE TAXPAYER’S LIFE EXPECTANCY FROM THE TIME HE FIRST CLAIMS THE RETIREMENT INCOME DEDUCTION; TO AMEND SECTION 1263520, RELATING TO INCOME TAX CREDIT FOR HABITAT CONSTRUCTION, MAINTENANCE, AND MANAGEMENT, SO AS TO MAKE A TECHNICAL CLARIFICATION BY CROSSREFERENCING SPECIFIC SECTIONS IMPOSING TAX LIABILITY AND TO ALLOW THE CREDIT TO A MEMBER OF A LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP; TO AMEND SECTIONS 121030, 121050, 121080, AND 121081, ALL AS AMENDED AND ALL RELATING TO THE ENTERPRISE ZONE ACT, SO AS TO CONFORM ITS PROVISIONS TO INCLUDE A JOB DEVELOPMENT CREDIT FOR THE TRAINING OR RETRAINING OF AN INFORMATION TECHNOLOGY EMPLOYEE, TO INCLUDE TECHNOLOGY INTENSIVE FACILITIES AS QUALIFYING BUSINESSES, TO ADJUST THE HOURLY WAGE RANGES FOR DETERMINING THE JOB CREDIT PERCENTAGE, TO PROVIDE FOR PENALTIES FOR FAILURE TO TIMELY PAY TAXES, TO PROVIDE FOR INDEPENDENT CERTIFICATIONS OF SATISFACTION OF REQUIREMENTS, AND TO EFFECT TECHNICAL CHANGES; TO AMEND SECTION 121320, RELATING TO THE DEFINITION OF “NET INCOME” FOR PURPOSES OF INCOME TAX PAYABLE BY A BUILDING AND LOAN ASSOCIATION, SO AS TO UPDATE CROSSREFERENCES; TO AMEND SECTION 121360, RELATING TO THE APPLICABILITY AND ADOPTION OF APPROPRIATE ENFORCEMENT AND ADMINISTRATION PROVISIONS OF TAX LAW TO TAXATION OF BUILDING AND LOAN ASSOCIATIONS, SO AS TO UPDATE CROSSREFERENCES AND MAKE OTHER TECHNICAL CHANGES; TO AMEND SECTION 122090, RELATING TO THE CORPORATION LICENSE FEE FOR A HOLDING COMPANY, SO AS TO INSERT “INSURER” IN DISTINGUISHING BETWEEN THE HOLDING COMPANY AND THE SUBSIDIARY FOR PURPOSES OF CALCULATING THE AMOUNT OF THE FEE; TO AMEND SECTION 1220110, RELATING TO INAPPLICABILITY OF THE PROVISIONS FOR CORPORATION LICENSE FEES TO CERTAIN ORGANIZATIONS, COMPANIES, AND ASSOCIATIONS, SO AS TO MAKE THE PROVISIONS INAPPLICABLE TO A HOMEOWNERS’ ASSOCIATION AND TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 1228530, RELATING TO INCREASE IN TAX RATES ON MOTOR FUEL, SO AS TO INCLUDE MOTOR FUEL HELD IN REGISTERED AND NONREGISTERED TANKS; TO AMEND SECTION 1228985, RELATING TO FLOORSTOCKS TAX REPORT AND PAYMENT, SO AS TO PROVIDE FOR THE DEPARTMENT TO DETERMINE THE DUE DATE; TO AMEND SECTION 12281135, RELATING TO THE FUEL VENDOR LICENSE AND FEE, SO AS TO REQUIRE THE PURCHASER FROM A TERMINAL SUPPLIER TO BE LICENSED; TO AMEND SECTION 12281730, RELATING TO MONTHLY REPORTS FROM FUEL TRANSPORTERS, SO AS TO IMPOSE A CIVIL PENALTY FOR FAILURE TO INCLUDE CERTAIN INFORMATION; TO AMEND SECTION 123690, RELATING TO DEFINITIONS OF “GROSS PROCEEDS OF SALE” FOR PURPOSES OF THE SALES AND USE TAX, SO AS TO CHANGE THE TAX PAID ON AN UNCOLLECTIBLE DEBT TO A DEDUCTION INSTEAD OF A CREDIT; TO AMEND SECTION 1236130, AS AMENDED, RELATING TO DEFINITION OF “SALES PRICE” FOR SALES TAX PURPOSES, SO AS TO EXCLUDE AN AMOUNT ACTUALLY CHARGED OFF AS UNCOLLECTIBLE; TO AMEND SECTION 1236910, RELATING TO IMPOSITION OF THE SALES TAX, SO AS TO REQUIRE THE SOURCING OF MOBILE TELECOMMUNICATIONS SERVICES CHARGES SUBJECT TO THE SALES TAX; TO AMEND SECTION 1236940, RELATING TO AMOUNTS ADDED TO THE SALES PRICE AS A RESULT OF THE STATE SALES TAX, SO AS TO CLARIFY THE RANGE OF SUMS AND TO PROVIDE FOR THE AMOUNTS WHICH MAY BE ADDED TO THE SALES PRICE FOR PURPOSES OF THE STATE SALES TAX ON ACCOMMODATIONS AND COMBINED STATE SALES TAX AND LOCAL TAX FOR COUNTIES IMPOSING A LOCAL TAX; TO AMEND SECTION 12361310, RELATING TO IMPOSITION OF THE USE TAX, SO AS TO REQUIRE THE SOURCING OF MOBILE TELECOMMUNICATIONS SERVICES WITH CHARGES SUBJECT TO THE USE TAX; TO AMEND SECTION 1237220, AS AMENDED, RELATING TO EXEMPTIONS FROM AD VALOREM TAXATION, SO AS TO INCLUDE A CROSS REFERENCE; TO AMEND SECTION 125443, AS AMENDED, RELATING TO CIVIL PENALTIES APPLICABLE TO TAX AND REVENUE LAW, AND SECTION 125444, RELATING TO CRIMINAL PENALTIES APPLICABLE TO TAX AND REVENUE LAW, SO AS TO DELETE THE CRIMINAL PENALTY FOR FAILURE TO DEPOSIT OR PAY TAXES DEDUCTED AND WITHHELD FOR PAYMENT AND TO PROVIDE A CIVIL PENALTY; TO AMEND CHAPTER 54, TITLE 12, RELATING TO COLLECTION AND ENFORCEMENT OF TAXATION, BY ADDING SECTION 1254195 SO AS TO PROVIDE FOR A PENALTY ASSESSED AGAINST A PERSON WHO IS RESPONSIBLE FOR REMITTING, BUT FAILS TO REMIT, SALES TAX TO THE DEPARTMENT OF REVENUE; TO AMEND SECTION 125485, AS AMENDED, RELATING TO TIME LIMITATIONS AND EXCEPTIONS FOR ASSESSMENT OF TAXES AND FEES, SO AS TO PROVIDE FOR SUSPENSION OF THE RUNNING OF THE STATUTE OF LIMITATIONS WHILE AN INDIVIDUAL TAXPAYER IS CONSIDERED “FINANCIALLY DISABLED” AND TO DEFINE THAT TERM; TO AMEND SECTION 1254200, RELATING TO THE REQUIREMENT OF A BOND TO SECURE PAYMENT OF TAXES, SO AS TO PROVIDE THE ALTERNATIVE AND ADDITIONAL SECURITY OF DEPOSIT AND MAINTENANCE OF TAXES DUE IN A SEPARATE ACCOUNT, TO DELETE THE REQUIREMENT OF NOTICE BY CERTIFIED MAIL, AND TO PROVIDE THAT NONCOMPLIANCE IS A MISDEMEANOR TRIABLE IN MAGISTRATE’S COURT; TO AMEND SECTION 1254227, AS AMENDED, RELATING TO OUTOFSTATE COLLECTIONS, SO AS TO DELETE THE REQUIREMENT OF NOTICE BY CERTIFIED MAIL; TO AMEND SECTION 1254240, AS AMENDED, RELATING TO PROHIBITION OF DISCLOSURE OF RECORDS AND REPORTS AND RETURNS FILED WITH THE DEPARTMENT, SO AS TO ALLOW AN EXCEPTION FOR DISCLOSURE OF A DEFICIENCY ASSESSMENT TO AN ATTORNEY CONDUCTING A CLOSING; TO AMEND SECTION 1256120, RELATING TO APPEALS FROM THE SETOFF DEBT COLLECTION ACT, SO AS TO PROVIDE THAT THE DEPARTMENT AND THE INTERNAL REVENUE SERVICE ARE EXEMPT AND ARE SUBJECT EXCLUSIVELY TO OTHER APPEAL PROCEDURES; TO AMEND SECTION 1258185, RELATING TO EXTENSIONS OF PAYMENT PERIODS, SO AS TO DELETE PRESCRIBED EXTENSION PERIODS; TO AMEND SECTION 126090, RELATING TO THE ADMINISTRATIVE TAX PROCESS FOR PURPOSES OF THE REVENUE PROCEDURES ACT, SO AS TO UPDATE CITATIONS TO THE INTERNAL REVENUE CODE; TO AMEND SECTION 43730, AS AMENDED, RELATING TO SALES AND USE TAXES OR TOLLS AS REVENUE FOR TRANSPORTATION FACILITIES, SO AS TO CLARIFY “MISALLOCATIONS” FOR PURPOSES OF ADJUSTING LATER DISTRIBUTIONS; AND TO AMEND ACT 588 OF 1994, RELATING TO THE CHEROKEE COUNTY SCHOOL DISTRICT 1 SCHOOL BONDPROPERTY TAX RELIEF ACT AND ACT 441 OF 2000, RELATING TO THE CHESTERFIELD COUNTY SCHOOL DISTRICT SCHOOL BONDPROPERTY TAX RELIEF ACT, BOTH SO AS TO CLARIFY THE METHOD AND TIMING OF THE CORRECTION OF MISALLOCATION OF SALES TAX REVENUES BY THE STATE TREASURER AND TO PROVIDE FOR THE DISTRIBUTION OF SALES TAX REVENUES UNDER THE ACT WHEN THE DEPARTMENT OF REVENUE IS UNABLE TO IDENTIFY THE SOURCE OF THE REVENUES.